Labor Day Travel Costs Drop: Airfare, Hotels, Gas Cheaper
Although school has started and fall is quickly approaching, Labor Day weekend gives families an opportunity to still squeeze in a summer getaway.
“Labor Day caps off summer travel and provides one final holiday weekend before the fall routine begins,” said Stacey Barber, vice president of AAA Travel. “The top cities on the domestic and international lists are Seattle and Vancouver, both port cities for Alaska cruises. While some people are going on dream cruises or European vacations, many travelers are staying closer to home and taking road trips to nearby beaches or national parks.”
Domestic roundtrip flights are 6 percent less expensive than last year, averaging $720 a ticket. Many travelers are flying into Orlando, New York, Denver and Atlanta for sightseeing, attractions and events. AAA booking data also show hotel rates are 11 percent lower and car rental costs are 3 percent cheaper compared to last Labor Day.
Summer gas prices have remained low, matching summer averages in 2021. Last year, the national average for a gallon of regular was $3.33 on Labor Day. Barring a tropical storm or hurricane affecting Gulf Coast refineries, gas prices should stay below what they were last year. So far in 2025, gas prices have seen few fluctuations, thanks to steady crude oil prices.
The cost to travel internationally this Labor Day weekend is a mixed bag; although hotels are 2 percent cheaper, airfare is 8 percent more expensive. Although European cities make up most of AAA’s top international destinations, the No. 1 spot belongs to Vancouver. Alaska cruises are wrapping up a strong season, as AAA projected at the beginning of the year.
The best time to drive over Labor Day weekend is before lunchtime, and for those hitting the road on Saturday, the earlier, the better. Traffic congestion worsens as the day progresses, according to INRIX, a transportation data provider. The worst times to drive over the holiday weekend typically are in the afternoon and early evening. Saturday is expected to be extra busy, with many drivers heading out of town or taking day trips.
–Dwight Widaman
